Sunday, March 28, 2010

A sideways and choppy market last week as we closed slightly up for the week. After the amazing 14-days up in a row on the SPY it could be assumed that bulls would like to take some profits and await the next move. Remain patient and objective. Choppy weeks can decimate an account so if you’ve stuck to your plan for the week then pat yourself on the back.

In the week ahead look for these news announcements to act as potential market movers…

A handful of news announcements in this shortened week as the stock market is closed on April 2 for Good Friday. It would be logical to see sellers coming in at the S&P 1225 level (approximately) so we want to see if the bulls are able to push up and through the 61.8 retracement line. For those traders who got short at 1120 would then be forced to cover their shorts above the 1225 level resulting in a short squeeze.

Once adopting the lifestyle of a trader, you begin to relate everything back to trading in one way or another. As we take a look at the unfolding of the college basketball tournament, the amount of upsets and close games this year is phenomenal. Three of the top seeds have been knocked out leaving just Duke as a final contender for the Final Four (as I post this at 4:05 CST the Duke/Baylor game has just begun).

What does this have to do with trading you ask? How many times do you see an overhyped stock (or team) breakdown or an undervalued stock (or underdog) rally? A word to the wise, if the non-professional trading community begins talking about getting long a stock, you (as the wise trader) want to get short.

This book or audio book can be purchased on Amazon and is well worth the read or listen. It covers, in-depth, a step by step approach to developing as a trader. I find it is a must read for day traders.

Sunday, March 14, 2010

Another short and sweet post. We'll be gone the following 2 weeks as we are taking a little first quarter vacation to Costa Rica.

The Dow is the the only top line figure to break above it's prior highs. The S&P500 is at an extremely pivotal point and we should see a break higher or move lower in the next week or so. We will be monitoring the situation from Costa Rica, have a great trading week and as always, send us your questions and comments, we love to hear from you!

Sunday, March 7, 2010

The markets continue to show strength even after some mixed economic news announcements. The Russell has broken out to new highs so we would look for the S&P and Dow to do the same in the week ahead. Watch for a hestitation or anticipation of S&P $1150 level.

Friday, March 5, 2010

Robert Green from Green Trader Tax talks about what you need to know to setup your own Trading Entity and important information regarding taxes. Click here to view the video presentation after registering for free at moneyshow.com.

Disclaimer:

Trading stocks and derivatives is risky. It is strongly recommended that you consult a licensed financial professional before taking any action to buy or sell. The information on this blog is for educational and reflective purposes only and is not intended to be financial advice. If you make or lose money in the stock market it is because you decided to place the trade and cannot be blamed on anyone else.